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Poster:
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DeadRed1971 |
Date:
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November 20, 2011 07:15:58pm |
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Forum:
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occupywallstreet
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Subject:
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Re: Another 1% weasel |
What insider trading? Her and her husband bought stock in an IPO, perfectly legal. It was an initial public offering only open to select investors (her husband's business is venture capital). They have kept virtually all the stock they bought. She has profited a mere $2500 to $5000 from it. They did not flip the stock for a quick buck. The profit margin of the shares are only numbers on paper.
Insider trading is when there is privileged knowledge that can cause a valuation or devaluation of stock, and parties can invest or divest themselves of shares to make a profit. One example is selling off shares in a pharma knowing that the FDA is about to release a report rejecting the company's new wonder drug.
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